Which of These Is an Estimated WACC Computed Using Some

question 1

Multiple Choice

Which of these is an estimated WACC computed using some sort of proxy for the average equity risk of the projects in a particular division?

• A) average WACC
• B) divisional WACC
• C) proxy WACC
• D) pure-play WACC

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Definitions:

Legal Defensibility

The ability of a decision or policy to be upheld in a court of law, often concerning adherence to laws and regulations.

Evaluator Domination

A scenario in performance reviews or evaluations where the assessor's biases or power disproportionately influences the outcome.

Performance Evaluation Bias

The presence of subjective judgments or prejudices that unfairly influence the assessment of an employee's performance.

Frame-Of-Reference Training

A training method that helps individuals understand and evaluate their performance or behaviors using a common standard or perspective.